Harnessing Biotechnology for Economic Development

Syllabus: GS3/ Economy

Context

• The Union government unveiled its BioE3 (Biotechnology for Economy, Environment and Employment) policy for Fostering High Performance Biomanufacturing.

Biotechnology

• Biotechnology deals with the application of biological knowledge and techniques pertaining to molecular, cellular and genetic processes to develop significantly improved products and services.
• The Biotechnology industry in India is divided into the following segments – Biopharmaceuticals, Bio-services, Bio-agriculture, Bio-Industrials and Bio-IT.

Status of Biotechnology in India

• The percentage share of the biotechnology segments is:
  • BioPharmaceuticals- 62% ( $57.5 Bn) 
  • BioAgriculture- 13% ( $11.5 Bn) 
  • BioIndustry- 15% ( $14.1 Bn) 
  • BioIT & BioServices- 10% ( $9.3 Bn) 
• Biotechnology sector is recognized as the key driver for contributing to India’s USD 5 trillion economy target.
• India is among the Top-12 destinations for biotechnology in the world and 3rd largest destination for biotechnology in Asia Pacific, with approximately 3% share in the global Biotechnology industry.
• In 2022, India became the fifth-largest economy globally and is recognized as a top innovation economy in Central and Southern Asia, ranking 40th according to the Global Innovation Index (GII) Report 2023.
• The Indian Biotechnology industry was valued at $93.1 billion in 2022, with expectations of reaching $300 billion by 2030.

Potential of Biotechnology in India

• India has a huge wealth of bioresources, an unsaturated resource waiting to be harnessed and an advantage in Biotechnology especially due to the vast biodiversity and the unique bioresources in the Himalayas. 
• With a total population of 1.4 billion, 47% being under the age of 25, India has a large pool of young and skilled workforce.
• Biotechnology sector in India has made significant contributions to various sectors including Health, Medicine, Agriculture, Industry and Bioinformatics.

Government initiatives

• Policy initiatives of the Government of India (GoI) such as Startup India and Make in India programs are aimed to develop India as a world-class Biotechnology and Bio-manufacturing hub.
• National Biopharma Mission is supporting 101 projects including more than 150 organizations and 30 MSMEs.
• In 2022, India and Finland agreed to advance bilateral collaboration and expand cooperation in sectors like digital education, future mobile technologies, biotechnology, and the digital partnership in ICT. 
• Biotechnology Industry Research Assistance Council (BIRAC) established by the Department of Biotechnology (DBT) is aimed at strengthening and empowering emerging biotechnology enterprises to undertake strategic research and innovation
• Biotechnology Parks and Incubators are established across the country by the Department of Biotechnology (DBT), under the Ministry of Science and Technology, to translate research into products and services by providing the necessary infrastructure support. 
• Favorable Government Policies like Draft R&D Policy 2021, PLI Schemes and Clinical trial rules have propelled India to be the ‘pharmacy of the world’. 
• FDI Policy: 100% FDI is allowed under the automatic route for greenfield pharma. Also 100% FDI is allowed under the government route for brownfield pharma.
  • Up to 74% FDI is under the automatic route and beyond 74% is under the government approval route.

Way Ahead

• The BioE3 Policy will further strengthen Government’s initiatives such as ‘Net Zero’ carbon economy & ‘Lifestyle for Environment’ and will steer India on the path of accelerated ‘Green Growth’ by promoting ‘Circular Bioeconomy’. 
• It will foster an advanced future that is more sustainable, innovative, and responsive to global challenges and lays down the Bio-vision for Viksit Bharat.

Source: IE